Twenty annual payments of 5000 dollars each, with the first payment one year from now, are to be made from an account earning 10% per year, compounded annually. How much must be deposited now to cover the payments?


Answered 1 year ago
Answered 1 year ago
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In finding the sum of the finite series for present value, we will use direct substitution on the geometric series sum formula. But before that, we need to determine the value of the first element in the series, number of terms, and the common ratio.

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